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N. KOREA SEEKS PEACE TREATY WITH S. KOREA

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North Korea, in an overture to end 40 years of hostility with South Korea, proposed Tuesday that the divided nations' parliaments meet Aug. 26 to hammer out a peace treaty and discuss the North's possible participation in the Seoul Summer Olympics.A letter offering to work on a non-aggression pact was released Tuesday as 10,000 flower-waving North Korean students traveled to a rendezvous at the truce village of Panmunjom.